Our Guide to Understanding Residential and Commercial Property Management

Many first-time property owners make the mistake of thinking that commercial and residential property management follow the same policies and procedures. Just because you’re handling a caretaker for a property doesn’t mean that there are no specifics in their trade.

Choosing the wrong service can lead you to inaccuracies in estimating your ROI from your property, whether you’re selling it or leasing it for tenants. The consequences of this simple mistake can cost you to make inaccurate projections of your real estate’s value, which is an essential part of earning a profit in owning and selling properties.

Differences in licensure requirements

One of the most apparent distinctions between residential and commercial property management is the licensure requirements. Most states require educational and licensure needs in handling the property. Except for ID, ME, MA, MD, and VT, the rest of the states require a Real Estate Brokers License.

Some states, such as Washington D.C., South Carolina, South Dakota, and Montana, require specific education and licensure for commercial property management to separate brokers from residential property managers.

Differences in required skill sets

When it comes to skill, residential and commercial property managers may have some overlaps. However, commercial property managers need to have broader knowledge when it comes to regulatory and insurance information. These skill sets aren’t as useful in handling residential properties.

Commercial property management also handles different property types, ranging from retail, restaurant, industrial, and office real estate. Depending on the particular business’s industry, a property manager needs to ensure that the properties they handle are structurally and legally prepared for their tenants’ needs.

For example, a restaurant needs to observe proper hygiene and safety protocols before they can run their business. Commercial property managers need to ensure that all the areas of the building that can pose a health or safety risk need to receive the proper treatment.

Besides the check and balance of the property’s business operations, they also need to know how to conduct an adequate risk assessment to ensure the commercial assets’ safety. The more dangerous the business’s operations, the more policies that they need to educate themselves.

Differences in handling tenants

It’s not always the property type that defines the function of a building. Its tenants play a significant role in what services they need when it comes to handling real estate. Unlike tenants in residential properties with needs that you can easily convert to service payments and fees, commercial property tenants are directly influencing the profitability of the space.

An issue with the real estate’s facilities, such as running water and electricity, can hinder the tenant’s capacity to generate income to pay for the property’s monthly rent. That is a problem that residential property managers don’t have to manage when collecting their tenants’ payments.


As a property owner, you can’t always be present to look at the particulars of keeping your real estate in top shape. When it comes to letting a business partner oversee your operations, you need to make sure that they’re adequately equipped to handle the different obstacles that they may face. The key to having a profitable property is by trusting in the right company that has the proper training and expertise to handle the specifics of your building’s needs.

We’re the best property management company in Jacksonville, FL, ready to serve you by eliminating your property management worries. Get in touch with us today!